Portugal’s government is set to begin negotiations with Air France-KLM and Lufthansa over the partial privatisation of TAP Air Portugal after both airline groups submitted binding offers for a stake in the national carrier.
Minister of the Presidency António Leitão Amaro announced on Friday that the government would open discussions with the two bidders, whose proposals were submitted at the end of July.
According to the Lusa news agency, Leitão Amaro said the offers had different characteristics but placed an overall value on TAP that was broadly similar. He said this created an opportunity for the government to negotiate improved terms before selecting one preferred bidder for final discussions.
The Portuguese state is seeking to sell up to 49.9% of TAP’s share capital. Under the current plan, 5% of the company would be reserved for employees, while the state would retain a majority stake in the airline.
State-owned holding company Parpública, which manages the government’s corporate holdings, completed its assessment of the two binding offers and submitted its report to the government on September 1.
Air France-KLM and Lufthansa formally submitted bids on July 29, the final day of the application deadline. Both groups are seeking to acquire a 44.5% stake in TAP.
The government now has the option of negotiating with one or both bidders and asking them to submit revised final proposals before deciding who will become the preferred investor.
The process to partially privatise TAP was restarted in 2025 by the government of Prime Minister Luís Montenegro. The competition was narrowed to two major European airline groups after International Airlines Group, the owner of Iberia, withdrew from the process.
The proposed sale is part of a broader effort to secure a long-term strategic partner for TAP while maintaining state control over the airline. The government has previously stressed the importance of protecting Portugal’s interests, including the carrier’s role in maintaining international connections and supporting the country’s aviation sector.
Infrastructure Minister Miguel Pinto Luz has said the successful bidder could begin participating in the joint management of TAP as early as 2026 alongside the airline’s existing board.
However, the actual injection of new capital into the company is not expected until the summer of 2027.
The negotiations will now determine whether Air France-KLM or Lufthansa can improve their proposal sufficiently to secure a place as the government’s preferred partner. A final agreement could bring an end to a lengthy and politically sensitive process surrounding the future ownership and management of Portugal’s national airline.
